Presentation at Competition Day Bratislava Benoît Durand benoitdurandrbbeconcom 23 November 2016 Total damage for direct purchasers A Quantity B Demand p 1 c 1 c 0 q 1 p ID: 530361
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Slide1
Quantifying Damages
Presentation at Competition Day, Bratislava
Benoît Durandbenoit.durand@rbbecon.com
23 November
2016Slide2
Total damage for direct purchasers
A
€
Quantity
B
Demand
p
1
c
1
c
0
q
1
p
0
q
0
C
Profit
Cost increase
Price increase
Output reduction
Damage
=
A
(overcharge)
-
B (passing-on)
+ C (the lost business/volume effect)
ASlide3
Estimating the overcharge
Overcharge = Actual Input Price – Counterfactual Input Price
Counterfactual
Input Price
Time
Cartel period
Counterfactual PriceSlide4
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